Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The toy manufacturer's overall daily demand is assumed to be linear and contingent upon the pricing of toys: D=100015p. The unit cost of each toy

image text in transcribed
The toy manufacturer's overall daily demand is assumed to be linear and contingent upon the pricing of toys: D=100015p. The unit cost of each toy is $3, and the manufacturer also pays a daily rental of $100. a) What is the manufacturer's revenue if the selling price is $80 ? b) What is the optimal selling price that maximizes the manufacturer's revenue? c) The manufacturer wants to create customer segments by determining 3 different selling prices. Specifically, the manufacturer will sell the first Q1 amount of toys at the price of p1, the second Q2 at the price of p2, and finally, the last Q3 toys at p3, where p3>p2>p1. Write down the equations for Q1,Q2, and Q3, and build a mathematical model that will maximize the - manufacturer's revenue. d) A new toy supplier enters the market and wants to buy toys in bulk. The supplier's daily demand is estimated to be 1l2025p. Due to increasing market potential, the manufacturer must now take into account her daily production capacity of 800 . How would you update the mathematical formulation from part c, if the manufacturer wants to sell the toys to the supplier using the price of p4

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Decision Support And Business Intelligence Systems

Authors: David King, Ting Peng Liang

9th Edition

013610729X, 9780136107293

More Books

Students also viewed these General Management questions

Question

2. How do I perform this role?

Answered: 1 week ago